New Zealand’s Independence Not for Sale

The Trans-Pacific Partnership Agreement, Five
Eyes intelligence sharing and the American Foreign Account
Tax Compliance Act have put New Zealand’s sovereignty and
independence at risk and must be immediately reviewed, says
the Internet Party.

In its draft Independence policy
released today, the Internet Party said New Zealand's
sovereignty was being steadily eroded by shady backroom
deals with foreign powers, impacting the ability of New
Zealand to make its own decisions without undue
influence.

“Over the past few years, there have
been a number of challenges to our independence – the
Trans-Pacific Partnership Agreement (TPPA), Five Eyes
intelligence sharing and the Foreign Tax Account Compliance
Act (FATCA),” said Internet Party Leader Laila Harré.

“We will take steps to prevent the erosion of New
Zealand's independence. We have the right to make our own
decisions without kowtowing to foreign countries. The
influence of the United States Government, in particular,
over New Zealand is truly alarming, and it’s all happening
behind closed doors.”

Ms Harré said the Internet
Party would shift the power to ratify international treaties
such as the TPPA away from the executive and to Parliament,
repeal laws giving the Government and its Five Eyes partners
unprecedented spying powers and examine the possibility of
taking the US to an international dispute or judicial forum
such as the World Trade Organisation to put an end to the
influence of FATCA on New Zealand law.

Through the
Taxation (Annual Rates, Employee Allowances, and Remedial
Matters) Bill, expected to come into force next month, the
US FATCA law will compel New Zealand banks and other
financial institutions to audit, gather and report
information on all accounts that at any time during the year
have a value of $50,000 or more held by US persons.

“It is an unacceptable, unilateral imposition of US
law on New Zealand and New Zealanders,” said Ms Harré.
“While FATCA is a US law covering ‘US persons’, it’s
misleading in that it includes New Zealand citizens and
residents, for example dual US/New Zealand citizens, New
Zealand spouses of US citizens and those born in New Zealand
to a US citizen. It will also require those not covered by
the law to prove that they are not within its ambit.

“Compliance costs alone are astronomical. According to
the New Zealand Bankers’ Association, FATCA will cost New
Zealand banks $100 million to comply and the cost of
compliance worldwide has been estimated at US$10-US$20 for
every single dollar the Internal Revenue Service retrieves.
In effect, we’ll be paying to be America’s tax
collection agency.”

Ms Harré said FATCA was
typical of the way New Zealand's independence was being
undermined.

“It overrides our Privacy and Human
Rights acts, with the New Zealand Government co-opted by the
US Government to do its bidding. We will take the matter as
far as the World Trade Organisation if necessary.”

The TPPA was yet another example of the current
Government doing deals with overseas corporates and
governments without public oversight.

“We’re
being told that the TPPA will be good for New Zealand but
the Government refuses to specifically say what’s being
discussed or even who is involved,” said Ms Harré.

“Why the secrecy? Because, ultimately, there won’t
be any benefit. New Zealanders will lose out. Free trade is
a good thing but not if we’re trading off our investment,
competition, health, copyright and labour laws to foreign
governments and big corporates.”

Two examples that
threaten New Zealand’s independence to make its own future
decisions are Investor-State Dispute Settlement and the
subversion of “regulatory coherence”.

“Under
ISDS, foreign investors could claim that new laws and
regulations introduced by the New Zealand government have
breached their special rights, enabling them to sue for
millions in damages in secretive offshore tribunals,” said
Ms Harré.

“Regulatory coherence, meant to achieve
greater domestic co-ordination of regulations and increase
transparency, has been subverted by narrow corporate
interests while neutering competing national priorities and
democratic political institutions.”

The Internet
Party will bring TPPA negotiations out into the open.

“Cabinet will not be able to use its executive power
to ratify the TPPA without extensive and open public debate.
Ratification will be made by Parliament based on a thorough
understanding of all the pros and cons. If the costs of the
TPPA outweigh the benefits for New Zealand, or compromise
our independence in any way, we will not support it.”

The Internet Party’s draft Independence policy is now
online for review and discussion on the policy forum. The
work-in-progress policy document is available here.

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